19 March 2021

The past decade has seen exceptional returns in the US equity markets, predominantly driven by the vast array of growth stocks (mainly technology companies) shrugging off numerous headwinds and driving company fortunes to record levels.

On the other side of the coin, Value stocks have largely underperformed their counterparts over the past decade. On a relative basis, Value stocks are at their cheapest levels in 100 years. Inflation expectations in the US have risen materially since the onset of Covid, largely due to the increased money supply caused by various stimulus packages. In addition, the prices of key inputs into the economy – steel, corn, and copper – have risen significantly across the board in the past year, with oil prices recently breaching levels from 12 months ago.

Value stocks appear to be well positioned to perform relatively well given their businesses tend to be fairly leveraged (large fixed asset bases), lending itself to enhanced revenue when inflation increases. Historic analysis indicates that Value stocks tended to outperform Growth stocks during periods of heightened inflation.

- Source: Ninety One Global Value Fund Strategy Commentary 31 December 2020

Why the S&P 500 Value Index ?

The left picture compares the

cumulative daily difference

between the return of the S&P

Value index versus the return of

the S&P Growth index, since

inception. It is evident that the

gap between the two is at record

levels, with the price of Value

Stocks being at all time discounts

relative to their Growth

counterparts. Data up to 18-03-21

02

S&P: Cumulative difference between Value and Growth (daily returns)

-90%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

1995 2000 2005 2010 2015 2020

Sector Exposure

*Source: Bloomberg at 26 February 2021

Financials20%

Health Care14%

Industrials12%

Information Technology

12%

Consumer Staples

9%

Consumer Discretionary

8%

Communication Services

7%

Utilities5%

Energy6%

Real Estate4%

Materials3%

Information Technology

28%

Health Care13%

Consumer Discretionary

12%

Financials11%

Communication Services

11%

Industrials8%

Consumer Staples6%

Energy3%

Materials3%

Utilities3%

Real Estate2%

S&P 500 Value Index S&P 500 Index

Launch Date 30 May 1992

Domicile/Currency United States of America/USD

Number of Stocks 436

Weighting Method Float-Adjusted Market Cap Weighted

Rebalancing Frequency Quarterly

Calculation Frequency Real Time

03

Value vs Growth

*Source: Bloomberg

-100%

-50%

0%

50%

100%

150%

200%

250%

300%

2000 2004 2008 2012 2016 2020

5 Year Returns

S&P 500 Value S&P 500 Growth

04

Investec USD S&P 500 Value Index Autocall

Term to MaturityMaximum 5 years, provided the product doesn’t call earlier on an automatic call date being either at the end of year

3 or year 4

Currency USD

Enhanced Return8% per annum in USD (cumulative return) should the underlying index be flat/positive on annual automatic

call dates

Credit Reference Entity Standard Chartered Plc

Capital Protection 100% capital protection, provided the index does not end below 70% of the initial index level at maturity

Automatic Call Dates Year 3, year 4 and maturity in year 5

Advisor Fees 1.25% upfront and 0.75% per annum for year 2 and 3 (as reduced after a credit event)

Minimum Investment $125 000 and increments of $1 000 thereafter

Pricing Daily priced and traded on the Euronext Dublin Exchange with a 0.5% bid/mid spread

Bloomberg Ticker SVX Index

05

Payoff Profile

2 Opportunities to call, in

year 3 or 4, before maturity

Capital Protection only

measured at maturity.

70%

06

07

Back testing

*Starting date from first available data point, up till 18 March 2021

-50%

0%

50%

100%

150%

200%

Autocall Return SVX Index5 Year Rolling Return

Distribution of

Returns

Number of

Instances

Autocall year 3 (24%) 69.58%

Autocall year 4 (32%) 10.07%

Autocall year 5 (40%) 7.13%

Did not call (0%) 13.15%

Loss incurred 0.06%

1.25%Upfront distribution fee

0.75%Annual fee for year 2

and year 3

InvestVia a stockbroking

account

All fees, including distribution, listing costs and licensing

costs, have been priced into the product and

will not affect the investor’s return.

• Investors are required to have stockbroking accounts

in order to invest.

• Financial advisors need the following FSCA licenses:

FSP

categoryFinancial products

Category I

1.13 Derivative Instruments or

1.24 Structured Deposits or

1.4 Long-term insurance subcategory C

(for life wrapper only)

Category II

2.10 Derivative Instruments or

2.18 Structured Deposits or

2.2 Long-term Insurance subcategory C (for

life wrapper only)

Fees & Procedure to Invest

08

09

Tax Implications

• The information provided in this brochure is general information and should not be construed

as tax advice.

• It is recommended that prospective investors seek independent professional legal, tax and

accounting advice and consider the investment in the light of the Investor’s particular circumstances.

• No responsibility is accepted by IBL for the treatment of any court of law, tax, banking or other authority

in any jurisdiction of the investment and no undertaking, warranty or representation is given regarding

the outcome of any such investment.

10

Credit Risk

• As the Investec Autocalls are credit linked to Standard Chartered plc, should a Credit Event (bankruptcy,

failure to pay, obligation default, repudiation/ moratorium, Government Intervention and restructuring) occur in

respect of Standard Chartered plc, the return would be reduced in accordance with the recovery ratio.

Investors also bear credit risk on Investec Bank Ltd.

• If a Credit Event occurs in respect of the Standard Chartered plc, on or before the Maturity Date, the Investec

Autocall will terminate on the Maturity Date and the Investor will receive the following: The market value of the

Autocall on the business day immediately prior to the date of the Credit Event multiplied by the recovery ratio.

• The debt represents general, unsecured, senior, contractual obligations of the Investec Bank Ltd.

11

Important Dates

Closing Date 07 May 2021

Trade Date 14 May 2021

Final Valuation Date 14 May 2026

Listing Date 18 May 2021

12

Contacts

Brian McMillan +27 11 291 3180 brian.mcmillan@investec.co.za

Aneeqah Samie +27 11 263 5203 aneeqah.samie@investec.co.za

Brian McMillan Japie LubbeAneeqah Samie John Sherry

Japie Lubbe +27 21 416 3307 japie.lubbe@investec.co.za

John Sherry +27 11 384 5307 john.sherry@investec.co.za

Johannesburg Cape Town

13

Disclaimer

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herein constitutes an offer to invest in the Investec Autocall, implementation of which is subject to acceptance of the signed Application Form by Investec. Investors should seek their own

independent professional advice regarding the suitability of this Autocall for their own particular investment purposes.

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as at the date of this Communication, which conditions may change without notification to Investec and/or the recipient. This is a summary of relevant information and should not be considered

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does not take into account your financial position or needs.

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thereof and accepts no liability in relation thereto.

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